The ramifications of Donald Trump’s election victory continue to impact the cryptocurrency market, leading to a sustained period of expansion and activity.
Recent data shows a significant milestone reached in the market, with global investment products witnessing inflows totaling around $3.13 billion.
This spike is primarily linked to the increased interest in U.S. spot Bitcoin exchange-traded funds (ETFs), emphasizing the changing dynamics of the market.
Breaking Records in Crypto Inflows
Data from CoinShares highlights the growing confidence among investors and the far-reaching effects of political and economic changes on the crypto realm.
According to reports,
“Investment products in digital assets experienced the highest weekly inflows ever, reaching $3.13 billion, bringing the total year-to-date inflows to a record $37 billion.”
These figures were for the week of November 18th–22nd, with spot Bitcoin ETFs witnessing an impressive 102% surge from the previous week’s $1.67 billion, as per SoSoValue.
The positive inflows for seven consecutive weeks signify steady momentum and growing investor interest, with total assets under management (AUM) hitting a peak of $153 billion.
During this uptrend, BlackRock’s IBIT continued its market dominance, holding $48.95 billion in net assets as of November 22nd, with total inflows reaching $31.33 billion.
In contrast, Grayscale’s GBTC boasted $21.61 billion in net assets but faced outflows exceeding $20 billion since its launch.
Blackrock’s IBIT Takes the Lead
An in-depth study revealed that a significant chunk of last week’s inflows, around $2.05 billion, came from IBIT.
These Bitcoin funds emerged as the frontrunners, contributing $3 billion to the weekly total—a stark difference from the initial-year inflows of U.S. gold ETFs, which stood at $309 million.
While Bitcoin’s price surge continued attracting both institutional and retail investors, it also enticed $10 million in inflows into short-Bitcoin products.
This led to a monthly influx of $58 million in these products—the highest level since August 2022.
Bitcoin and Beyond
While Bitcoin led in inflows, altcoins also showed a rising interest among institutional investors.
For example, Solana [SOL] topped the charts with $16 million in net weekly inflows, surpassing Ethereum [ETH] at $2.8 million.
Other notable performers included Ripple [XRP], Litecoin [LTC], and Chainlink [LINK], attracting $15 million, $4.1 million, and $1.3 million, respectively.
These statistics depict the growing trust in altcoins, driven by strong price movements and the increasing adoption of these digital assets across various applications.
Undoubtedly, these trends highlight the significant impact of the elections on the crypto market.
Nevertheless, it’s essential to recognize that various other factors might have contributed to these trends. James Butterfill, CoinShares’ Head of Research, remarked,
“The recent surge in activity appears to be influenced by a blend of looser monetary policies and the Republican party’s success in the latest US elections.”